Local governments around the country have received a $575 million boost after the Australian Government made the fourth quarterly round of payments under its four-year $9.3 billion the Financial Assistance Grants programme.
Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss said the $2.3 billion in funding delivered under the programme over 2014-15 alone would strengthen local communities and bolster economic growth.
“Local communities are the backbone of Australia and local governments are key to those communities’ ongoing growth and prosperity.
“Financial Assistance Grants give councils the financial capacity to develop and implement plans to ensure the equitable provision of services and amenities.
“The programme helps deliver infrastructure, health, recreation, environmental and employment projects identified as priorities according to local needs.
“These projects range from local services to roads and parks, swimming pools and libraries.
“Funding under the Financial Assistance Grants programme is being extended to all local governments across Australia and comes with no strings attached – meaning money can be directed to priority local projects.”
Mr Truss said as the closest tier of government to Australians, local governments play a critical role in maintaining and developing the social and economic fabric of regions.
“Financial Assistance Grants are an important means for the Australian Government to support this vital local work.
“The Australian Government is prioritising the delivery of the infrastructure communities need to secure a prosperous future and recognises that investment starts at the local level.”
An initiative announced in the 2014-15 Federal Budget was the freezing of the indexation of the Financial Assistance Grants.
The Australian Local Government Association estimated losses caused by the freeze will be $925 million over the four years to 2017-18.
